Digital Performance Management - 4 Key Metrics to Watch
October 26, 2015

Klaus Enzenhofer
Dynatrace

Share this

Today's websites are not just marketing channels, they are critical production factors. If a website doesn't deliver a satisfactory customer experience the entire value delivery chain breaks down, and a company will not generate revenue regardless of product quality or value proposition.

Mastering digital performance is one of the leading challenges of the web economy, and requires a joint effort between IT and the lines of business. It means measuring and managing the end-to-end transaction delivery and translating it into actionable information. This will allow you to deliver an engaging digital experience, thus maximizing revenue and improving brand loyalty.

This gets a lot easier if you simply monitor a handful of key application performance metrics. This blog describes four good ones to get started with:

1. Make sure that your online business is actually generating revenue

Cyber Monday 2014 was Walmart's biggest ever online shopping event, with mobile driving 70% of total traffic. Application performance was a major factor impacting the business results; a recent study indicates the company experienced a 2% conversion increase for every one-second improvement in response time.

It's the responsibility of both the business and engineering teams to define and achieve conversion and revenue goals, and keeping an eye on these two metrics in real time is essential.

The first set of metrics to add to your dashboard are:

■ Revenue targets

■ Conversion Rate

■ A number, or count, of money-making actions

2. Make sure that your infrastructure is available to generate revenue

There is nothing worse than your system being unavailable. This frustrates customers and often drives them to a competitor's website! Kia and Soda Stream USA struggled with this issue during Super Bowl XLVIII. To address this risk, set up an availability check for your IT systems. This is inexpensive, easily implemented and does not require much in the way of significant IT changes.

The metric to add to your dashboard is:

■ Availability from my top locations

3. Be certain that every revenue-generating customer is a happy one

You can track and understand the user's journey based on their actions. This allows you to determine what the user did with your application, how long they worked with it, which features they used and how the overall experience with your company was delivered.

The metric to add to your dashboard is:

■ User Experience Index

4. Are your business critical actions successful, erroneous or slow?

The user experience index is a great metric to provide a general overview, but there are some other revenue-generating transactions like "search", "add to cart", "check out" and "pay" that you should also be plugged into. For financial services companies, key transactions like "log-in" and "transfer funds" can be added.

The metrics to add to your dashboard are:

■ Number of executions of the critical action

■ Failure rate per critical action

■ Response time per critical action

Conclusion

It's the responsibility of both the business and engineering teams to not only define conversion and revenue goals, but also make sure they are reached. In IT you can't impact the product portfolio or how it's marketed, but you can certainly make sure application performance doesn't become a roadblock. You want to eliminate all revenue barriers, and a focus on digital performance can insure that the road to conversion is quick and easy.

Klaus Enzenhofer is a Senior Technology Strategist in the Center of Excellence at Dynatrace.

Share this

The Latest

April 22, 2024

In our latest research, Cisco's The App Attention Index 2023: Beware the Application Generation, 62% of consumers report their expectations for digital experiences are far higher than they were two years ago, and 64% state they are less forgiving of poor digital services than they were just 12 months ago ...

April 19, 2024

In MEAN TIME TO INSIGHT Episode 5, Shamus McGillicuddy, VP of Research, Network Infrastructure and Operations, at EMA discusses the network source of truth ...

April 18, 2024

A vast majority (89%) of organizations have rapidly expanded their technology in the past few years and three quarters (76%) say it's brought with it increased "chaos" that they have to manage, according to Situation Report 2024: Managing Technology Chaos from Software AG ...

April 17, 2024

In 2024 the number one challenge facing IT teams is a lack of skilled workers, and many are turning to automation as an answer, according to IT Trends: 2024 Industry Report ...

April 16, 2024

Organizations are continuing to embrace multicloud environments and cloud-native architectures to enable rapid transformation and deliver secure innovation. However, despite the speed, scale, and agility enabled by these modern cloud ecosystems, organizations are struggling to manage the explosion of data they create, according to The state of observability 2024: Overcoming complexity through AI-driven analytics and automation strategies, a report from Dynatrace ...

April 15, 2024

Organizations recognize the value of observability, but only 10% of them are actually practicing full observability of their applications and infrastructure. This is among the key findings from the recently completed Logz.io 2024 Observability Pulse Survey and Report ...

April 11, 2024

Businesses must adopt a comprehensive Internet Performance Monitoring (IPM) strategy, says Enterprise Management Associates (EMA), a leading IT analyst research firm. This strategy is crucial to bridge the significant observability gap within today's complex IT infrastructures. The recommendation is particularly timely, given that 99% of enterprises are expanding their use of the Internet as a primary connectivity conduit while facing challenges due to the inefficiency of multiple, disjointed monitoring tools, according to Modern Enterprises Must Boost Observability with Internet Performance Monitoring, a new report from EMA and Catchpoint ...

April 10, 2024

Choosing the right approach is critical with cloud monitoring in hybrid environments. Otherwise, you may drive up costs with features you don’t need and risk diminishing the visibility of your on-premises IT ...

April 09, 2024

Consumers ranked the marketing strategies and missteps that most significantly impact brand trust, which 73% say is their biggest motivator to share first-party data, according to The Rules of the Marketing Game, a 2023 report from Pantheon ...

April 08, 2024

Digital experience monitoring is the practice of monitoring and analyzing the complete digital user journey of your applications, websites, APIs, and other digital services. It involves tracking the performance of your web application from the perspective of the end user, providing detailed insights on user experience, app performance, and customer satisfaction ...